EUR/USD, GBP/USD retrace back to 38.2% and 50% Fibonacci levels 2016.09.20

EUR/USD

4 hour

The EUR/USD is building a small pause at the Fibonacci level after breaking below the support trend line (dotted green). A bearish continuation could take price to lower Fibonacci levels.

1 hour

The EUR/USD has retraced to the 50% Fibonacci retracement level of wave 4 (orange) vs 3. A break above the 78.6% Fib invalidates the wave 4 (orange). A break below support (green) could confirm the wave 5 (green) of wave A (orange).

GBP/USD

4 hour

The GBP/USD needs to break below the 78.6% Fibonacci level (blue) and support trend line (green) before price has a chance of moving towards the Fibonacci targets of wave 3 (green) vs 1. A break above resistance (red) invalidates the current wave 3's.

1 hour

The GBP/USD has retraced back to the 38.2% Fibonacci level of wave 4 (blue) vs 3. A break above the resistance trend line (red) and 78.6% Fibonacci level invalidates wave 4 (blue) whereas a break below support (green) could indicate the continuation of wave 3 (green).

USD/JPY

4 hour

The USD/JPY is in a contracting triangle chart pattern (green/orange lines). A break above resistance (red) confirms the end of the downtrend and the start of bullish price action. A break below the support line (green) indicates that another wave 2 (purple) is still active.

1 hour

The USD/JPY has reached the 78.6% Fibonacci level of wave 2 (blue). A break above the resistance (red) could confirm the start of bullish price action, whereas a break below support (green) makes a wave 2 (blue) less likely.

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